There’s no way to guarantee “very large gains” after a crisis; markets are uncertain and past patterns don’t ensure future results. What these filters do is tilt the search toward U.S. stocks that are:
- Hit hard in the current crisis (so they may be “on sale”),
- Financially solid enough to survive, and
- Have a history of strong growth and higher volatility (which can amplify upside in a recovery).
Screening Filters
Region: United States (region: ['United States'])
- Purpose: Limit the universe to U.S. companies.
- Rationale: You explicitly asked for “US stocks,” and U.S. markets (NYSE/Nasdaq) have deep liquidity, strong disclosure standards, and are usually central in global recoveries.
Exchange: NYSE & Nasdaq (list_exchange: ['XNYS', 'XNAS'])
- Purpose: Focus on major U.S. exchanges.
- Rationale: NYSE and Nasdaq list larger, more established, and better-regulated companies, making it easier to access reliable financial data and trade with good liquidity—important if you’re trying to position for a strong post-crisis move.
High Beta / High Risk (beta: ['HighRisk'])
- Purpose: Target more volatile stocks.
- Rationale: High-beta stocks tend to fall more than the market in a downturn but also rise more in a recovery. If you’re seeking “very large gains,” you usually need higher volatility; this filter selects names that historically move more than the overall market (both up and down).
Big Recent Price Drop (year_price_change_pct: min -80, max -30)
- Purpose: Find stocks that have already fallen sharply (down 30%–80% over the last year).
- Rationale: To capture large upside, you often look for companies that have been heavily sold off during the crisis. This range aims to avoid:
- Stocks that have barely fallen (less room for rebound), and
- Those that are down more than 80% (which might indicate severe, possibly permanent damage).
It concentrates on “deeply beaten down but not totally destroyed.”
Current Ratio ≥ 1.2 (current_ratio: min 1.2)
- Purpose: Ensure reasonable short-term liquidity.
- Rationale: A current ratio above 1.0 means current assets cover current liabilities; 1.2 adds a safety buffer. For post-crisis gains, the company must survive the crisis without a liquidity crunch or distress equity raise that could dilute shareholders.
Debt-to-Equity ≤ 1.5 (debt_equity: max 1.5)
- Purpose: Control leverage risk.
- Rationale: Highly indebted companies are at much greater risk in crises—higher bankruptcy risk, covenant breaches, or forced asset sales. Capping D/E at 1.5 helps exclude the most overleveraged names, focusing on those with more manageable balance sheets that can participate in the rebound instead of just trying to stay alive.
Revenue 5-Year CAGR ≥ 10% (revenue_5yr_cagr: min 10)
- Purpose: Require a history of solid top-line growth.
- Rationale: To aim for “very large” returns on the other side of a crisis, you generally want companies that were growing well before the downturn. A 10%+ revenue CAGR over five years indicates:
- Structural growth drivers (e.g., market share gains, expanding market, strong product/service demand),
- A business that could resume faster growth once conditions normalize, potentially fueling a sharp recovery in the stock price.
EPS 5-Year CAGR ≥ 10% (eps_5yr_cagr: min 10)
- Purpose: Require strong earnings growth, not just sales growth.
- Rationale: Earnings growth is ultimately what supports sustained price appreciation. A 10%+ EPS CAGR over five years suggests:
- Improving profitability and/or scale,
- Operational efficiency, and
- A management team that has historically converted revenue into growing profits—critical for strong post-crisis rerating and multiple expansion.
Why Results Match Your Goal
- The high beta and large recent price drops align with your desire for very large upside by focusing on volatile names that have been heavily marked down in the crisis.
- The current ratio and debt-to-equity constraints help ensure these are not “zombie” companies but businesses with a reasonable chance of surviving and recovering.
- The 5-year revenue and EPS growth filters aim at companies with proven growth engines, which are better candidates to rebound strongly when the crisis fades.
- Restricting to U.S. stocks on NYSE/Nasdaq directly matches your request and keeps the focus on liquid, transparent markets.
Together, the screen is looking for:
U.S. growth companies with strong historical fundamentals and manageable balance sheets that have been hit hard in the current crisis and are volatile enough to potentially deliver outsized gains if/when the market recovers—without guaranteeing that outcome.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.